In the current global business landscape, a competitive company is a company that invests in innovation. Defined by its human-centred, status-quo breaking characteristics, innovation can happen in many ways.

THE TYPES OF INNOVATION

Incremental Innovation

This is a low-impact kind of innovation. Incremental Innovation happens by a series of small improvements to an organisation’s existing products, services, procedures, culture, and so forth.

This type of innovation has a positive impact on the company’s overall performance. However, Incremental Innovation doesn’t necessarily serve as a competitive advantage in the marketplace, for its level of complexity isn’t the greatest and, therefore allows competitors to copy it quite easily.

A good example of Incremental Innovation is when a company launches a new model of smartphone and, after a short while, all of its competitors have already introduced the same technology to their range of smartphones.

Disruptive Innovation

Also known as “radical innovation”, Disruptive Innovation creates a new market and value network, which results in a disruption in the existing market. Innovations that follow under this category displace established products, companies and business models; they change the way people consume a product or service and create a “new normal” behaviour-wise.

Back to smartphones, this product in itself is a perfect example of Disruptive Innovation. After the first smartphone was invented, how people communicate was forever altered. Not only that, but this product also spun other industries on their heads for having the capacity of taking photos and videos, streaming music, being used as a GPS, etc.

Smartphones also created the possibility for innovation to happen elsewhere. The apps that now live inside every single one of our pockets are responsible for a tremendous break in paradigm – say, for example, the fact that no one needs to stand almost in the middle of the road and use their hand to wave for a taxi anymore; instead, we push a button on an app and tell the driver the exact spot in which we want to be met.

So, how does your company innovate? Learn more about bringing the innovative mindset to your company here.

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